Financial advisors who specialize in pension rollover decisions.
Lump sum vs lifetime annuity. Joint-and-survivor elections. FERS and federal pensions. Corporate pension buyout windows. The decision that permanently shapes your retirement income — matched with advisors who've modeled hundreds of them.
The most consequential retirement decision you'll make once
At retirement or job separation, defined-benefit pension holders face a one-time choice that swings $100-500K of lifetime value:
- Take the lifetime annuity — guaranteed monthly income for life, usually with spouse-survivorship options at reduced rate.
- Take the lump sum — roll into an IRA, control the investments, leave any remainder to heirs.
What our matched specialists handle
- Corporate pension buyout windows. Ford, GM, Boeing, IBM, UPS, Procter & Gamble and others have offered time-limited lump-sum buyout programs. Deadlines are usually 60-90 days.
- Federal employees (FERS/CSRS). CSRS retirees face different math than FERS (which has 3-component benefit: pension + TSP + SS). Survivor election choices vary.
- Union pensions. Multi-employer plan dynamics, PBGC coverage questions, funding-status considerations.
- State/municipal pensions. DROP (Deferred Retirement Option Program) elections, inflation-adjusted vs. fixed benefits.
- Private-sector frozen pensions. Company froze the plan years ago; now you face the terminal decision.
- Early retirement windows. Laid-off or accepting a buyout at 55-60 — pension timing can shift.
Tools & guides
Lump Sum vs Annuity Calculator
NPV analysis of your two options, adjusted for longevity + interest rate + survivor assumptions.
Pension Lump Sum Tax Calculator (2026)
See the exact federal income tax you'd owe if you take the lump sum as cash — vs. $0 by rolling over. Uses 2026 brackets. Shows your effective rate and dollar savings.
Pension + Social Security Income Tax Calculator (2026)
How much of your Social Security is taxable when you have pension income? Uses the IRS provisional income formula (IRC §86) with 2026 brackets. Shows the "SS tax torpedo" effect and your total federal tax bill.
Pension Withholding Calculator — W-4P (2026)
How much should you withhold from your monthly pension check? Most retirees under-withhold because the plan's default treats your pension as a single filer's only income. Enter your pension, filing status, and other income to get your recommended monthly W-4P amount and see the April surprise if you don't adjust.
Pension Break-Even Age Calculator
At what age do cumulative annuity payments exceed the lump sum? Sensitivity table across 0–7% return assumptions.
Pension Rollover Withdrawal Calculator
Rolled the lump sum to an IRA? See how long it lasts at your planned withdrawal rate — with year-by-year projections, a sensitivity table across return scenarios, and the maximum sustainable monthly withdrawal to age 90 and 95.
J&S Election Calculator
Model the lifetime cost/benefit of 50%, 25%, or no survivor benefit vs. life-only election.
FERS Retirement Planning Guide
Federal employees: survivor election, FERS Supplement, TSP rollover strategy, COLA math, Medicare coordination.
Pension Rollover Decision Guide
Full framework — longevity, survivor, interest rate, employer-specific rules, tax efficiency.
Pension Buyout Window Guide
How lump-sum windows are calculated using IRS segment rates, PBGC protection limits, and whether to take the offer.
Pension Rollover to IRA Guide
Decided on the lump sum? Avoid the 20% withholding trap, execute the direct rollover correctly, and model the NUA and Roth conversion opportunity.
FERS Annuity Calculator
Federal employees: estimate your basic annuity using the 1.0%/1.1% multiplier formula, survivor benefit reduction, and FERS Supplement bridge payment if retiring before 62.
FERS Supplement Earnings Test Calculator (2026)
Retiring before 62? If you plan to work after leaving federal service, the earnings test reduces your FERS Supplement $1 for every $2 you earn above $24,480. Enter your years of service and Social Security estimate to see your net supplement and a year-by-year bridge table to age 62.
FERS Sick Leave Retirement Credit Calculator
Your unused sick leave balance converts to additional months of FERS service credit at retirement — and increases your monthly annuity for life. Enter your LES hours, high-3 salary, and years of service to see exactly how many months of credit you're accumulating and what it adds to your monthly check. Also shows if sick leave pushes you over the 20-year threshold for the 1.1% multiplier.
CSRS Annuity Calculator
Civil Service Retirement System employees: compute your annuity using the tiered 1.5%/1.75%/2.0% formula, see the exact monthly cost of each survivor election (2.5%/$3,600 + 10% formula), and compare CSRS vs FERS for the same service history.
Military Retirement Pay Calculator (2026)
Calculate your monthly retired pay under High-3, BRS, or Final Pay. Shows gross pay, SBP premium, net pay, and survivor benefit. Compares all three systems side by side — and flags CRDP concurrent receipt if you have a 50%+ VA disability rating.
Pension COLA Value Calculator
How much is your cost-of-living adjustment worth in today's dollars? Enter your FERS, CSRS, or military pension and see the exact NPV premium COLA adds — plus a life-expectancy sensitivity table and 30-year payment growth schedule.
Social Security Claiming Age Calculator for Pension Holders (2026)
Should you claim at 62, 67, or 70 when you have pension income? See your after-tax SS benefit at every claiming age, break-even ages vs. claiming early, and which age maximizes lifetime income at your target life expectancy — with 2026 provisional income rules.
Pension + Social Security Strategy Guide
When to claim SS if you have pension income, the 2025 WEP/GPO repeal and who gets restored benefits, how pension income affects SS taxation, and the bridge-to-70 delay strategy.
Pension Lump Sum Tax Guide
How the IRS taxes your lump sum decision — bracket math for cash-outs, direct rollover deferral, multi-year Roth conversion strategy, Rule of 55 tradeoffs, and state pension exemptions.
Joint-and-Survivor Election Guide
The spousal decision in depth: actuarial cost by age gap, pension max strategy risks, ERISA § 205 consent rules, and how SS survivor benefits interact with your election.
CSRS Retirement Planning Guide
Civil Service Retirement System: tiered annuity formula (1.5/1.75/2%), survivor benefit election, Voluntary Contributions Program Roth conversion, Social Security Fairness Act impact, and CSRS Offset.
Pension Income & Medicare IRMAA Guide
How pension annuity income and IRA RMDs trigger IRMAA surcharges — 2026 bracket table, the Roth conversion window strategy, Form SSA-44 appeals, and how IRMAA factors into the lump sum vs. annuity decision.
Leaving a Job With a Pension Before Retirement
Laid off or changing jobs with a vested pension at 55–62? Understand your three options — leave it, take the lump sum, or start early benefits — plus the age-55 rule, the 20% withholding trap, and how current interest rates affect lump sum offers.
State Income Tax on Pension Income (2026)
Which states don't tax pension income? The 9 no-income-tax states, 7 states with full pension exemptions (including Michigan's new 2026 change), partial-exemption states (Georgia, New York, Colorado), and how state taxes factor into the lump sum vs. annuity math.
Union & Multi-Employer Pension Guide
Most union pensions don't offer lump sums — the decision is which annuity form to elect. Covers PBGC guarantee formula (very different from corporate pensions), zone funding status, ARPA rescue, mandatory small-balance cashouts, and survivor elections under ERISA §205.
403(b) Rollover to IRA Guide for Teachers & Healthcare Workers
Teachers and hospital workers: can you roll your 403(b) to an IRA when you also have a pension? Covers the Rule of 55 trap (rolling destroys it), Roth 403(b) mechanics, the 15-year long-service catch-up unique to 403(b), IRMAA coordination with pension income, and whether to roll before or after 59½.
457(b) Rollover to IRA Guide
State and local government employees: can you roll your 457(b) deferred comp to an IRA? Governmental plans can — non-governmental plans cannot. Covers the no-early-withdrawal-penalty advantage you'll lose by rolling out, the "tainted money" trap, Roth 457(b) mechanics, and how to coordinate with your state pension.
How to Invest a Pension Rollover
You've taken the lump sum — now what? Asset allocation when you have pension income, the pension-as-bond framework, Roth conversion window strategy, RMD risk management, IRMAA awareness, and 5 common post-rollover investment mistakes.
Pension Rollover to Roth IRA Guide
Should you convert your pension rollover to a Roth IRA? No income limit on conversions. 2026 bracket math, the OBBBA $6,000 senior bonus deduction trap, IRMAA threshold ($109K single / $218K MFJ), and a worked example converting $850K over 10 years at 5.8% effective federal rate.
SPIA vs Pension Annuity: Should You Buy an Annuity with Your Lump Sum?
Took the lump sum but want guaranteed income back? A Single Premium Immediate Annuity (SPIA) can replicate monthly pension-style income — but the tax treatment (IRA-funded = 100% taxable; after-tax funded = exclusion ratio), insurer protection ($250K state guaranty vs PBGC), and payout math differ significantly from your original pension.
What Happens to Your Pension When You Die (2026)
QPSA survivor rules (ERISA §205), what your spouse receives based on your annuity election, FERS death benefits ($43,800 + 50% salary lump sum), and how a rolled-over IRA passes to heirs under the 10-year rule. The lump sum vs annuity decision has major implications for what you leave behind.
Corporate Pension Buyout Windows: Ford, Boeing, GM, IBM & More (2026)
Major employers run time-limited lump-sum buyout windows to reduce pension liabilities. How the offer is calculated using IRS §417(e) segment rates, what Ford, GM, Boeing, IBM, GE, and AT&T pension programs look like, the PBGC cap ($7,789/mo) and its implications, and the five questions to answer before you decide.
Boeing Pension Lump Sum vs. Annuity: BCERP Guide for SPEEA & Salaried Employees (2026)
Boeing froze salaried pensions in 2016 and SPEEA engineer accruals in 2018 — but the lump-sum decision is still live. How the November segment rate lock determines your BCERP lump sum offer, PBGC coverage given Boeing's financial situation, Rule of 55 coordination with the Boeing VIP 401(k), and whether the PBGC $7,789/mo cap is relevant to your benefit size.
GM Pension Lump Sum vs. Annuity: General Motors Salaried Plan Guide (2026)
GM's 2012 Prudential transfer moved $29 billion in salaried pension obligations — splitting GM retirees into two distinct groups with different rules and different protections. If you're still in GM's Salaried Retirement Program, you may have a lump-sum option at retirement. Covers the two-track situation, IRS §417(e) rate mechanics, PBGC vs. state guaranty fund coverage, the RSP Rule-of-55 trap, and how to evaluate lump sum vs. annuity with current 2026 rates.
Ford Pension Lump Sum vs. Annuity: General Retirement Plan Guide (2026)
Ford Motor Company's 2012 voluntary lump-sum window offered ~90,000 former salaried employees the chance to take the present value of their accrued GRP benefit — and de-risking has continued since. If you're still in Ford's General Retirement Plan, you may have a lump-sum option at retirement. Covers the 2012 program history, subsequent pension risk transfers and PBGC coverage implications, IRS §417(e) segment rate mechanics, the TESP 401(k) Rule-of-55 trap, and lump sum vs. annuity analysis at 2026 rates.
AT&T Pension Lump Sum vs. Annuity: Guide for AT&T Employees (2026)
AT&T's pension plan reflects decades of acquisitions — SBC, BellSouth, Cingular Wireless, WarnerMedia. In 2023, AT&T transferred $8.05 billion in pension liabilities for 96,000 participants to Athene Annuity and Life Company, ending PBGC protection for those retirees. Whether your benefit stayed in the AT&T plan or moved to Athene changes the lump-sum vs. annuity calculus entirely. Covers the November segment-rate lock-in, PBGC and state guaranty exposure, cash balance plan mechanics, TESP Rule-of-55 coordination, and post-rollover RMD and IRMAA risk.
GE Pension Lump Sum vs. Annuity: Guide for GE Aerospace, GE Vernova & GE HealthCare Employees (2026)
GE's 2021 pension freeze, the 2019 lump-sum window (100,000 former employees offered a buyout), and GE's split into three companies all affect which entity holds your benefit and what your options are. In December 2020, GE transferred $1.7 billion in pension liabilities for 70,000 retirees to Athene, ending PBGC protection for that group. Covers the November segment-rate look-back, PBGC cap exposure for remaining participants, GESSP Rule-of-55 coordination, and post-rollover RMD and IRMAA risk.
IBM Pension Lump Sum vs. Annuity: Guide for IBM Employees and Retirees (2026)
IBM executed two of the largest pension risk transfers in U.S. history — $16B to Prudential and MetLife in 2022, and $6B to Prudential in 2024 — removing ~132,000 participants from PBGC protection. Covers what it means for IBM retirees now receiving payments from Prudential or MetLife, how the frozen traditional plan's lump sum is calculated, the new Retirement Benefit Account (RBA, 6% guarantee through 2026), and the RSPA 401(k) Rule of 55 trap that rolling to an IRA permanently destroys.
FedEx Pension Lump Sum vs. Annuity: Guide for FedEx Employees (2026)
FedEx froze its Retirement Plan effective January 1, 2023, locking in accrued benefits for eligible salaried and management employees. No new pension accruals, but the frozen benefit is still payable at retirement as a monthly annuity or lump sum. Covers the frozen-plan timing asymmetry (rate movement is the only reason to wait), IRS §417(e) segment rate mechanics, PBGC $7,789/month coverage, the FedEx RSP 401(k) Rule-of-55 trap, and post-rollover IRMAA and RMD risk for large balances.
Lockheed Martin Pension Lump Sum vs. Annuity: Guide for LM Employees (2026)
Lockheed Martin's pension has two unusual features most employees don't know about: a $5,000/month cap that disqualifies many senior employees from taking a lump sum at all, and two Athene pension risk transfers (2021 + 2022, totaling $9.2B / ~31,600 participants) that ended PBGC protection for those groups — now subject to a 2024 class-action lawsuit. Covers lump-sum eligibility, the two-phase benefit freeze (earnings 2016, service 2020), Athene transfer status, PBGC cap exposure for remaining participants, LM Savings Plan Rule-of-55 coordination, and post-rollover RMD and IRMAA risk.
Verizon Pension Lump Sum vs. Annuity: Guide for Verizon Employees (2026)
Verizon has completed two massive pension risk transfers — $7.5B to Prudential in 2012 (41,000 retirees) and $5.9B to Prudential and RGA in 2024 (56,000 retirees) — removing approximately 97,000 participants from PBGC protection. Whether your benefit is still in the Verizon Management Pension Plan or has moved to Prudential changes your risk profile entirely. Covers the November segment-rate lock-in, PBGC and state guaranty coverage, VSP Rule-of-55 coordination, and post-rollover RMD and IRMAA risk for large balances.
RTX / Raytheon Pension Lump Sum vs. Annuity: Guide for RTX Employees (2026)
RTX (formerly Raytheon Technologies) froze its pension for most salaried employees in 2007 — but the lump-sum vs. annuity decision is very much alive. In December 2025, RTX transferred $2.5 billion in pension obligations for 60,000 retirees to Prudential Insurance, ending PBGC protection for that group. Covers how lump sums are calculated under IRS §417(e) segment rates, whether your benefit moved to Prudential (and what that means for your risk exposure), PBGC cap exposure for remaining participants, RTX Savings Plan Rule-of-55 trap, and the post-rollover Roth conversion window for large balances.
Honeywell Pension Lump Sum vs. Annuity: Guide for Honeywell Employees (2026)
Honeywell International split into two independent companies on June 29, 2026 — Honeywell Aerospace Technologies (HONA) and Honeywell Technologies (HON) — and each now independently backs its own pension obligations. Depending on which business segment you worked in, your pension responsibility has moved to a different, more focused company. Covers the AlliedSignal merger legacy plans, the Pension Choice election, IRS §417(e) segment-rate calculation, PBGC coverage status, the Honeywell 401(k) Rule-of-55 trap with Fidelity, and lump sum vs. annuity decision framework for 2026.
UPS Pension Lump Sum vs. Annuity: Guide for UPS Employees (2026)
UPS splits into two pension worlds: non-union management employees have the frozen UPS Retirement Plan (lump-sum option via §417(e) segment rates, PBGC single-employer coverage) while Teamster drivers and hourly workers have annuity-only plans through the IBT-UPS plan, WCTP, or New England Teamsters. Covers the 2007 Central States withdrawal ($6.1B), the 2022 ARPA $35.8B rescue and benefit restorations, record 2023 IBT contract pension increases (up to $1,000/month more), UPS Savings Plan Rule-of-55 trap, and the post-rollover Roth conversion window for large management lump sums.
PBGC Pension Insurance 2026: How Much Is Your Pension Protected?
The $7,789.77/month PBGC cap at age 65. What's excluded (recent benefit increases, early retirement supplements). How plan termination works. Why exceeding the cap changes the lump sum vs. annuity decision — and how much of the excess really has no federal backstop.
72(t) SEPP: Access Your Pension Rollover IRA Before 59½ Without the 10% Penalty
Rolled your pension to an IRA before age 59½ and need income? Section 72(t) substantially equal periodic payments eliminate the early withdrawal penalty — but you're locked in for 5 years or until 59½, whichever is later. Covers the three calculation methods, the modification trap, Rule of 55 comparison, and the partial IRA segregation strategy.
FERS MRA+10 Early Retirement Calculator
Leaving federal service at your Minimum Retirement Age with 10–29 years of service? Compare the reduced immediate annuity (5% per year penalty for each year under 62) vs. postponing to 62 or 60. Shows break-even age, year-by-year cumulative income, and the hidden cost of the lost FERS Supplement.
VERA and VSIP: Should You Take the Federal Early Retirement Offer? (2026)
With agencies offering VERA/VSIP packages in 2026, federal employees face a 30–60 day decision window. Covers FERS annuity math under VERA (no reduction), the FERS Supplement delay if you're under MRA, TSP Rule of 55 timing, FEHB continuation, and the real after-tax value of the $25,000 VSIP buyout.
FERS Deferred Retirement: What Happens to Your Pension When You Left Federal Service Early
Left a federal job at 40–50 with 10–25 years of FERS service? Your pension is preserved — but your high-3 salary is frozen at the day you left, you won't receive the FERS Supplement, and FEHB may be gone. This guide explains when your deferred annuity starts (age 60 or 62 depending on years of service), how to calculate the frozen-high-3 impact, the FEHB 5-year rule trap, and whether to leave your TSP alone or roll it to an IRA in the meantime.
IRS Simplified Method Calculator — Pension Exclusion Ratio
FERS, CSRS, teachers, firefighters, and police all made after-tax contributions to their pension — so a portion of every monthly payment is tax-free. This calculator uses the IRC §72(d)(1) statutory table to compute your monthly exclusion amount, taxable split, and full 10-year recovery schedule. Many retirees overpay taxes for years by skipping this step.
NUA Election Calculator (2026) — Employer Stock Tax Strategy
If your pension or 401(k) holds company stock with substantial appreciation, NUA treatment under IRC §402(e)(4) lets you pay long-term capital gains rates (0–20%) on the appreciation instead of ordinary income rates up to 37%. Enter your stock value, plan cost basis, and income to see whether the NUA election saves you money and by how much — with 2026 LTCG brackets and NIIT calculation.
IRA RMD Calculator for Pension Rollovers (2026)
Rolled your pension to an IRA? See when Required Minimum Distributions start (age 73 or 75 under SECURE 2.0), your first-year RMD amount, and a year-by-year schedule — with IRMAA Medicare surcharge flags if your RMD plus other income crosses the threshold.
Form 1099-R and Pension Rollovers: How to Report It on Your Taxes
Rolled over your pension but the 1099-R shows the full $600,000 as "distributions"? Here's what every box means, how to read distribution codes (G = tax-free rollover, 7 = taxable distribution), and exactly how to enter it on Form 1040 Lines 5a, 5b, and the new 2025 Rollover checkbox — so you don't accidentally trigger a phantom six-figure tax bill.
In-Service Pension Distribution: Rolling Your Pension While Still Working
If you're 59½ or older and still employed, your plan may allow you to roll all or part of your vested pension to an IRA now — without quitting. Covers when plans allow it (IRC §401(a)(36)), five reasons to consider it (interest-rate timing, PBGC risk, Roth conversion window), and five traps including the age-55 rule you permanently lose if you roll out.
Pension Rollover to 401(k) vs IRA: Which Is Better?
Most people automatically roll a pension to an IRA — but if you're still working, rolling into your current employer's 401(k) first can preserve the Rule of 55 (penalty-free access at 55+), delay RMDs while employed past 73, and give your balance unlimited federal ERISA creditor protection. Here's the decision table and split strategy.
Railroad Retirement Rollover: RRB Benefits, 401(k) Strategy & IRA Planning (2026)
BNSF, Union Pacific, CSX, Norfolk Southern, and Amtrak workers: your Tier I and Tier II RRB annuities cannot be rolled to an IRA — but your railroad 401(k) can, with two traps most workers don't know about. The age-55 penalty exception is permanently destroyed by an IRA rollover, and rolling the employer-funded portion can reduce your supplemental annuity. Full guide covering RRB retirement ages, 2026 COLA rates, provisional income tax treatment, and the Roth conversion window at age 60.
Roth Conversion Optimizer for Pension Rollover IRA (2026)
Rolled your pension to a traditional IRA? The IRS will force taxable RMDs starting at 73 or 75 — often in a higher bracket than you expect. This calculator finds the optimal annual Roth conversion amount: how much to convert each year to fill a chosen bracket, reduce future RMDs, and minimize lifetime taxes. Shows total tax cost, years to full conversion, and a year-by-year schedule with IRMAA warning.
Frozen Pension Plan: What It Means and Your Options at Retirement
IBM, GE, Boeing, Lockheed Martin and hundreds of other employers have frozen their pension plans — no more accruals, but the lump sum vs. annuity decision still applies. Covers hard vs. soft freeze, how your lump sum still fluctuates with §417(e) interest rates even after accruals stop, PBGC coverage, underfunding risk, and how the retirement timing math changes when there's nothing to gain by waiting.
What Happens to Your Pension If Your Company Is Acquired, Merges, or Goes Bankrupt
Worried about what a merger, acquisition, or bankruptcy means for your pension? ERISA protects your accrued benefit from being taken away — but whether you'll receive every dollar depends on plan funding, PBGC coverage, and the $7,789.77/mo guarantee cap. Covers how plan assumptions, standard and distress terminations, and PBGC receivership work — plus why M&A events often create a limited lump-sum window you shouldn't miss.
Best IRA Custodian for Pension Rollover: Fidelity vs Vanguard vs Schwab (2026)
Decided to take the lump sum? The custodian is where your money sits — but all three major custodians offer rollover IRAs with no annual fee and competitive index funds. What actually differs: rollover process quality, Roth conversion tools, advisor integration, direct indexing availability for large balances, and QLAC support. Includes a head-to-head comparison table and guidance on matching custodian to your specific rollover strategy.
TIAA-CREF Rollover to IRA: Rules, Restrictions & Decision Framework
University and nonprofit employees: rolling TIAA-CREF to an IRA is not like a 401(k) rollover. CREF variable accounts roll immediately — but TIAA Traditional has liquidity restrictions that depend on your contract type (RA, GRA, SRA, RC). RA contracts require a Transfer Payout Annuity: 10 annual installments, each of which can be directly rolled to your IRA tax-free. GRA holders have a 120-day window after separation to take a lump sum (2.5% surrender charge) before the installment requirement kicks in. Includes contract comparison table, GRA decision framework, and Roth conversion strategy for large TIAA balances.
How Long Does a Pension Rollover Take? Timeline & Process Guide
Decided to take the lump sum — now what? Most corporate pension rollovers take 6–12 weeks from election form to investable IRA cash. Covers the ERISA notice window, plan administrator processing, the direct rollover check, common delays (spousal consent forms, QDRO holds, quarterly commencement dates), and the 60-day clock if you're doing an indirect rollover.
Inherited Pension & Pension Rollover IRA: What Beneficiaries Need to Know (2026)
Inherited a pension or IRA from a pension rollover? Your options depend entirely on whether it's still a DB annuity in an employer plan (ERISA survivor rules, J&S election consequences) or a rolled IRA (10-year rule, annual RMDs when the deceased was past their RBD). Surviving spouses have unique rollover rights and the under-59½ penalty exception. Covers FERS death benefits, military SBP, non-spouse 10-year rule, T.D. 10001 annual RMD mechanics, and 10-year tax-planning strategy.
Pension Rollover FAQ: 27 Common Questions Answered (2026)
Quick answers to the most common pension rollover questions — lump sum vs annuity, the 20% withholding trap, how interest rates affect your offer, FERS and CSRS rules, when RMDs start, Roth conversion mechanics, IRMAA, and how to choose a fee-only advisor. Includes FAQ rich data for direct search answers, with links to the full specialist guides for each topic.
Pension Rollover: Common Questions
Should I take my pension lump sum or lifetime annuity?
There is no universal right answer. The annuity wins if you live past the break-even age — typically 80–88 depending on assumed returns. The lump sum is better if you have a shorter-than-average life expectancy, other guaranteed income, want to leave assets to heirs, or can invest above the annuity's implied yield (usually 3–4%). With IRS §417(e) segment rates elevated in 2026, lump-sum offers are smaller than they were in 2020 — shifting the math toward the annuity for many retirees. See: complete lump sum vs. annuity analysis.
What is a fee-only financial advisor and why does it matter?
A fee-only advisor charges you directly — flat fee, hourly, or a percentage of assets — and earns no commissions. For pension decisions, this matters because commission-based advisors earn AUM fees only if you take the lump sum and roll it to them. A fee-only advisor has no financial stake in which option you choose. See: how to choose a pension rollover advisor.
How do interest rates affect my pension lump sum?
They move in opposite directions. The IRS requires corporate pensions to calculate lump sums by discounting future payments using three segment rates (§417(e)). When rates rise, lump-sum offers shrink — sometimes by $100,000 or more on the same underlying pension. Most plans use November rates to set the following year's offers, so your retirement date determines which rates apply. See: how interest rates affect pension lump sums.
Is my pension protected if my company goes bankrupt?
The PBGC guarantees most private-sector pensions, but only up to $7,789.77/month at age 65 in 2026. Benefits above the cap have no federal backstop. If your employer has transferred pension liabilities to an insurance company — as AT&T, IBM, Verizon, RTX, and GE have done — PBGC protection ends entirely for that group. This risk exposure is a key reason large pensions favor the lump sum. See: PBGC pension guarantee guide.
Can I roll my pension lump sum to a Roth IRA?
Yes — there is no income limit on Roth conversions. You can roll to a traditional IRA first, then convert to Roth, or do a direct Roth rollover if your plan allows. The converted amount is fully taxable in the year of conversion. Most advisors spread conversions over several years, filling the 22–24% bracket each year before RMDs begin at 73 or 75 (SECURE 2.0). See: pension Roth IRA conversion guide.
What does a pension rollover advisor cost?
Fee-only advisors typically charge $250–$500/hour or $3,000–$8,000 for a comprehensive pension engagement covering lump sum vs. annuity analysis, survivor election, rollover execution, and Roth/IRMAA planning. For a decision involving a $500K–$2M pension, the fee is often worth many multiples in avoided mistakes — the 20% withholding trap alone can cost tens of thousands. Our matching service is free; advisors charge for their time directly. See: what to ask before hiring.
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